Garware Technical Fibres Q3 consolidated PAT falls 4% to Rs 36.6 crore

"We saw customers adjusting stocks in the third quarter significantly. We expect this to be short term in nature and will get corrected from the first quarter of FY24," Garware Technical Fibres Chairman and Managing Director Vayu Garware said.

Technical textiles manufacturer Garware Technical Fibres (formerly Garware-Wall Ropes) on Thursday reported a 4 per cent fall in consolidated profit after tax at Rs 36.6 crore during the December quarter.

The company's Profit After Tax (PAT) stood at Rs 38.1 crore in the year-ago period, Garware Technical Fibres said in a regulatory filing.

Net sales of the company decreased by 11 per cent to Rs 274.6 crore in the third quarter of FY23, compared to Rs 308.1 crore in the corresponding period of the previous financial year.

"The current quarter results have been impacted due to delay in orders from our customers in the industrial and sports businesses on account of recessionary pressures in Europe and the USA.

"We saw customers adjusting stocks in the third quarter significantly. We expect this to be short term in nature and will get corrected from the first quarter of FY24," Garware Technical Fibres Chairman and Managing Director Vayu Garware said.

There was an offset to some extent by strong order flow from Chile and Scotland Aquaculture business, focused on the company's innovative products like X18 and CFR, from major customers there, he said.

"These products are allowing customers to benefit from operational savings, which would otherwise be difficult. We have been able to maintain margins during the current quarter and expect that to continue. We look forward to a better fourth quarter with current visibility," he added.

Share of the company on Thursday closed 1.94 per cent down at Rs 3,108.40 apiece on the BSE.